Debt settlement companies have flourished as consumers have become trapped in credit card debt. With people out of work and relying on plastic to survive, these firms have great opportunities to hawk their services.

Investigators said they were told to stop paying their creditors after enrolling in a program, a move that can crush your credit score, get you sued and even increase your debt through late fees and interest. They were enticed by promises of high success rates. And in almost every case, they were told they'd have to pay the debt settlement company for its work before it actually reduced any debt. The kicker is there is no guarantee your debt will be reduced at all. Your creditors don't have to negotiate.

You can hear clips of GAO investigators' conversations with these companies.